Pakistan is producing excess electricity which is adding to the prevailing financial crisis in the country, as the government has had to pay for the electricity but cannot sell it further because the demand is low due to high cost. It is therefore advisable for the government to increase electricity usage – through its own projects.
One way can be to start electricity tram-trains in congested cities. They are very efficient, reliable and easy to use. Tram-trains, like all public transport, are not profitable and require government subsidises in first few years. And this is where excess electricity can be put to use.
Another easy way would be to construct cold storage in partnership with local entrepreneurs. Such facilities would improve food security and raise exports through increased electricity usage. The government can also fast-track construction of industries with heavy electricity use by allocating land on lease and creating business plans for projects through SMEDA. These new businesses can then be sold to public investors who can make investment and run these industries.
Reducing taxes and cost of electric appliances can also increase electricity usage in domestic sector. Besides, export of electricity to neighbouring countries is also always a good option.
Shahryar Khan Baseer
Islamabad
